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Hong Kong-listed Tongfang Kontafarma has acquired a sizeable
stake in Singapore-based fitness and wellness provider True Group for US$36.7
million in cash, a move that paves the way for the latter to significantly
expand its presence across China.
The deal, announced on Tuesday afternoon, will see Tongfang
Kontafarma - a Chinese company indirectly invested by Tsinghua University that
primarily manufactures and sells prescription drugs - take a 51 per cent stake
in True's Singapore and China businesses, as well as a 29 per cent stake in its
Taiwan operations.
As part of its longer-term growth strategy, True also
intends to pursue an initial public offering (IPO) on the Hong Kong Stock
Exchange within the next two years or so.
True currently owns and operates 26 fitness and yoga centres
in Singapore, China and Taiwan, with an annual turnover in excess of US$100
million.
The company's founder and group chief executive officer
Patrick Wee said the new partnership with Tongfang Ko…